MT Dynamic Trend

MicroTrends Support

June 17, 2014 08:15

Originally from ticket #2927.

I can't find any more information on the three key inputs to the Dynamic Trend indicator:
Multiplier
Period
Smoothing

I've tested different settings and the outcomes are interesting but not always intuitive as to their meaning.
Could you provide further description of these inputs and (aside from clearly being a trend indicator) how this indicator fundtions, OR some references to the original source if this is not an internally developed concept?

Thanks

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  MicroTrends Support

  June 17, 2014 08:17

  Hi

  Generally speaking

  Multiplier or Coefficient if larger will make the trend reversals smoother - less whipsaw on pullbacks 0 less noise.

  Period AKA length means you are using bars - from the current backwards for n bars/periods to make the calculation - again more = less signals - less reversals

  Smoothing means we are averaging out the results - using a moving averaging or some other smoothing calculation to again control whipsaws or spikes...

  so by adjusting 1 of these parameters by a significant amount * 4 for example should show an obvious result for you on the chart... depending on your dataseries

  the MT Dynamic trend can also be used for signal generation in the indicator

  MT Signals Trend Dynamic Trend

  Please let us know if you require further assistance

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